KGKG
Kona Gold Beverage Inc
Price:  
0.00 
USD
Volume:  
67,834,570.00
United States | Personal Products
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KGKG WACC - Weighted Average Cost of Capital

The WACC of Kona Gold Beverage Inc (KGKG) is 4.3%.

The Cost of Equity of Kona Gold Beverage Inc (KGKG) is 8.00%.
The Cost of Debt of Kona Gold Beverage Inc (KGKG) is 5.50%.

Range Selected
Cost of equity 2.90% - 13.10% 8.00%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 7.00% 5.50%
WACC 3.0% - 5.7% 4.3%
WACC

KGKG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta -0.42 1.28
Additional risk adjustments 1.0% 1.5%
Cost of equity 2.90% 13.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 12.09 12.09
Cost of debt 4.00% 7.00%
After-tax WACC 3.0% 5.7%
Selected WACC 4.3%

KGKG's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for KGKG:

cost_of_equity (8.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-0.42) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.